) Everything else held constant, when output is the natural rate level, wages will begin to increasing short-run aggregate supply. A) above, fall B) above; rise C) below, fall D) below; rise 8) An autonomous monetary policy casing reduces real interest rates and raises aggregate output __and the inflation rate rises A) temporarily; permanently B) permanently; temporarily C) permanently: permanently D) temporarily; temporarily 9) If the consumption function is C=20+0.8YD. then an increase in disposable income by $100 will result in an increase in consumer expenditure by A) S58 B) $64. C) S80 D) $100. 10) Everything else held constant, if consumption expenditure increases by 65 for a 100 increase in disposable income, the mpe is A) 0. B) 0.5. C) 0.65. D) 1. 11) The account that shows international transactions involving financial transactions (stocks, bonds, bank loans, etc.) is called the A) trade balance. B) current account. C) balance of payments. D) capital account 12) The monetary policy strategy that directly ties down the price of internationally traded goods A) exchange rate targeting. B) monetary targeting. C) inflation targeting. D) the implicit nominal anchor. 13) The quantity of reserves demanded equals A) required reserves plus borrowed reserves. B) excess reserves plus borrowed reserves. C) required reserves plus excess reserves. D) total reserves minus excess reserves